The Book Market of Japan
Breakfast Meeting
October, 11, Frankfurt am Main
Seiichi Higuchi
Japan Book Publishers Association
JAPAN
Population 120,000,000
Area
370,000km2
Population is not so small, compared to European
countries. For example, Germany has 80 million people,
France has 65 million etc. As the same situation of
European countries, a trend of ageing is advanced. The
percentage of people more than 65 years old is 20.8% in
2006. On the other hand, young generation has been
decreasing. This is the serious problem for the society
and publishing world as well.
Outline of the Book Market
of Japan
Retail Market Sales of
Books and Magazines
3,000.00
2,500.00
2,000.00
Magazines
Books
1,500.00
1,000.00
500.00
0.00
97 98
99 2000 01
02 03 04
05 06
Total Sales of Publications in 2006
Books
932.6 billion yen
(US$ 7.8 billion)
Magazines
1,220,0
(US$10.2 billion)
Japanese book market is not necessarily small, but it has become declined since
mid 1990s. The total sales of publishing industry in 2006 were nearly same as
those of 1990. Japanese publishing industries lost 500 billion yen per year for
these ten years. This means the size of the publishing industry became small by
20% of the maximum.
Ten years ago, parents always said to their children, do not read manga but
study hard. However, nowadays children do not read even manga. Their only
concern seems to communicate their friends through mobile phones.
１. Most medium-sized and large
publishers in Japan produce
both books and magazines,
and both are distributed through
the same channel.
In the trade market, a wholesale distributor will usually act as an intermediary
between the publisher and the bookstore. Generally, publishers do business
with distributors on a consignment basis, with the distributor then selling to the
retail market on returnable basis.
Distributors promptly and efficiently deliver books to bookstores and other
retailers nationwide after receiving stock from publishers. It is difficult to sell
books and magazines in Japan without a distributor, but a significant advantage
of this system is that even small publishers can compete on an equal basis with
major publishing houses in terms of getting titles into a large number of
bookstores.
Major Publishing House in Japan
Company
Shogakukan
Kodansha
Shueisha
Kadokawa
Gakken
Gyosei
NikkeiBP
Zenrin
Kobunsha
Bungeishunju
Top 10 Total
Share of Top 10
Total
Turnover in 2006
(million yen)
Number of new titles in
2006
146,951
145,570
139,982
68,100
67,601
59,182
55,248
51,278
32,500
31,271
797,683
37.08%
2,152,540
937
2,013
849
1,138
1,106
243
250
―
442
530
7,508
9.66%
77,722
２．Approximately 70% of
publications are distributed by
a few wholesalers, which cover
the whole country.
Publisher
Publisher
Wholesalers
Wholesalers
Bookstores
Bookstores
Convenience
Convenience stores
stores
University
University
cooperatives
cooperatives
Direct
Direct mail
mail
Export
Export
(direct
(direct
business/
business/
exportersexporters
exportersexporters-importers/
importers/
wholesalers
wholesalers))
Direct
Direct sales
sales
DoorDoor
to
Doortodoor sales
sales
Door--toto--door
Installment
Installment
payment
payment system
system
Dealers
Dealers
Newsstands
Newsstands
(stations
(stations etc.)
etc.)
Kiosks(JR
Kiosks(JR stations)
stations)
Newspaper
Newspaper agents
agents
School
School textbook
textbook distributors
distributors
SecondSecond
Secondhand booksellers
booksellers
Second--hand
Reading
Reading
audience,
audience,
including
including
libraries,
libraries,
schools,
schools,
members
members of
of
university
university
cooperatives
cooperatives
and
and overseas
overseas
readers
readers
Major Wholesalers
(million yen)
Company
Sales
Books
Magazines
others
Nippan
678,217
252,016
338,751
87,449
Tohan
654,964
253,149
354,757
47,058
Osakaya
120,561
71,644
47,652
1,264
Kurita
58,563
―
―
―
Taiyosha
48,274
22,141
24,995
1,138
Nikkyohan
38,269
Books
28,901
Textbooks 8,174
1,195
Chuosha
26,641
6,488
14,987
5,165
Total
1,625,489
642,513
781,142
143,269
Nippan, Oji Logistic Center
Tohan, Okegawa SCM Center
These are the major wholesalers in Japan. As you know, the share of two big wholesalers,
Nippan and Tohan are overwhelming. These two big companies covers more than 60% of
total sales of publications.
４． Bookstores are able to stock
publications without any risk
because of the consignment
system.
Book stores are able to stock publications without any risk because of the consignment system.
Under the Consignment Sales System, retailers and wholesalers can freely return unsold
publications within a set period of time (usually six months for newly released books). So, even
small booksellers are able to distribute a large selection of books with no risk, and specialty
bookstores can stock titles with small print runs or a slow turnover. Conversely, the consignment
sales system is also effective for mass-market publications aimed at nationwide audiences. The
unique system of book consignment serves consumers well because it offers more choice, and it
serves booksellers well because it helps them maintain their vitality. However, it can also work to
detrimental effect when publishers overproduce and distribute books that do not sell, thus
resulting in a large volume of returns. The task of rationalizing the distribution system to avoid
this pitfall still needs to be addressed.
Almost publications are distributed on a returnable basis.
Books
Publisher Wholesaler
Margin (8%)
Magazines
Publisher
Bookstore
Margin (22%)
Wholesaler Bookstore
Margin (8.5%)
Margin (23%)
Number of Bookstores in Japan
(Members of Japan Booksellers Federation)
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
70
75
80
85
90
95
2000
2007
Major Bookstore Chains
(including Convenience stores)
Sales in 2006
（Million yen）
Number of stores
Share
(%)
（Seven Eleven Japan）
177,345
11,735
8.2
Kinokuniya
118,070
65(+Overseas 24)
5.5
Maruzen
98,146
47
4.6
（Lawson）
80,423
8,564
3.7
（Familymart）
58,784
6,501
2.7
（Circle K Japan）
55,859
2,681
2.6
Yurindo
54,265
32
2.5
Bonkyodo
52,775
223
2.5
Junkudo
37,474
31
1.7
Miraiya
31,569
155
1.5
Top 10 Total
764,710
―
35.5
Share of Top 10 (%)
35.5
―
Total
2,152,540
―
Company
Ｒａｔｅ ｏｆ Ｒｅｔｕｒｎｓ
45.0
40.0
Books
35.0
30.0
Monthly
Magazines
Weekly
Magazines
25.0
20.0
15.0
10.0
5.0
0.0
80
85
90
95
2000
06
Kinokuniya Shinjuku South Store
Junkudo, Ikebukuro store
These are the major bookstore chains in Japan. Comparing with the situation of USA, the
share of the big chains are not so high. Three big chains in US, Barnes & Noble, Borders,
Books-A-million have approximately more than 50% of the whole book market. In Japan, the
total sales of top 6 chains are 392 billion yen, and this figure is about 18% of the total sales of
the whole country. Even the biggest one, Kinokuniya shares only 5.5%.
You can understand that the biggest sales are accomplished by Seven Eleven Japan. Of
course, Seven Eleven is not a bookstore but a convenience store chain. The 95 of the sales
of Seven Eleven are magazines.
Kobunkan, Kanda-jimbocho
This is a typical small bookstore. We used to be able to see such small bookstores in
the every corner of towns, however, as I mentioned, many small bookstores became
closed. Fortunately, this store is still alive at Kanda-jimbocho, where is the famous as
book town in Tokyo. There are many publishers, bookstores, antiquarian booksellers,
small distributors in the area. This store’s owner was the ex-president of the Japan
Booksellers Federation.
５. Readers are able to buy
publications for fixed price
anywhere in Japan because of
the Resale Price Maintenance
System.
Publications were ruled an exception to the 1953 Anti-Monopoly Law,
allowing the continuation of the pre-war custom of selling publications at
fixed prices.
The Resale Price Maintenance System, under which a publication are sold
across the country at a fixed price. For the publishers and bookstores
across the country, resale price maintenance enables the distribution of a
wide variety of titles in small volumes and makes possible royalty payments
for books with a small circulation.
This does not mean that publications must be sold at a fixed price, but
only means that the publications are allowed to be sold at a fixed price. In
other words, it depends on publisher whether they sell a specific publication
at a fixed price or not. The Resale Price Maintenance Agreements
themselves are contracts between publishers and wholesaler, or between
wholesaler and bookseller on a voluntary basis.
For eight years, the publishing industry fought against the government
Fair Trade Commission’s (FTC’s) stance that “from the perspective of
market competition, the resale price maintenance system should be
abolished.” This standoff came to an end on March 23, 2001, when the
commission released the following comment:
“From the perspective of fair competition policy, the resale price
maintenance system should be abolished. However, considering the large
number of dissenting voices expressing concern about the possible
influences on culture and the public good, as well as a lack of public
consensus on and support for abolishment, we therefore announce that, for
the time being, it is appropriate that the present system be maintained.”
The Japan Book Publishers Association values the understanding and
support of the Japanese public in this matter, but regrets that the
commission persists in maintaining the position that the resale price
maintenance system should be abolished.
Part of the reason for the decision was that, of the more than 28,000
comments sent to the FTC on the resale price maintenance system, more
than 99% were from supporters of the system, including authors groups,
local public organizations and nonpartisan members of the National Diet. It
would be fair to say that the commission was unable to ignore such an
overwhelming result.
In accordance with the request of the FTC that publishers, distributors and
bookstores should consider ways to make the system "more flexible and
practical“.
The publishing industry in Japan has been working to promote flexible and
diversified use of the resale price maintenance system to benefit readers,
such as the development of channels for the sale of books at open prices,
special thank-you sales for readers, and revisions of resale price
maintenance contracts and manuals governing the system.
Resale Price Maintenance System
Books
Periodicals
Newspapers
Phonograms
Music Tapes
Music Compact Discs
The Anti-monopoly Law allows to conclude the resale price maintenance agreement on
these 6 categories of commodities. Books, Periodicals, Newspapers, Phonograms, Music
Tapes and Music Compact disks. The RPMA is the only exception of the law and the
government does not want to extend the limitation to any other new media and new type of
goods and services.
RPMS is not applied to :
CD-ROM, DVD
E-books
Scondhand Books and Periodicals
Foreign Books and periodicals, journals
So, CD-ROM, DVD, E-books are not allowed to be sold at a fixed price. And as the RPMA is an
agreement between publishers and wholesalers or between wholesalers and bookstores, after
once publication is sold to the third party including readers, the RPMS is not applied. Therefore,
secondhanded bookshops are able to set the retail price at their discretion. And regarding
foreign books and magazines, as there is no RPMA between foreign publisher and importer in
Japan, RPMS is not applied.
Development of E-book
(Million yen)
2000
Mobile phone
1800
PC
1600
1400
1120
1200
1000
800
460
600
120
400
200
0
0
100
2002
5
170
2003
330
2004
700
480
2005
2006
６. Most of publishers are small or
medium-sized company and
their stocks are not listed on
the market.
Merger and acquisition of
publishing companies is
seldom done in Japan.
7. The market of publications in
Japanese is mature and many
books published abroad are
translated into Japanese.
On the other hand, the market
of books in English is relatively
small.
Number of Translation Titles
Year
New Publications
Translations
%
1994
48,824
4,303
8.8
1999
51,682
4,462
8.6
2004
56,613
4,943
8.7
Ratio of New Translation Title to the Field
Subjects
General
Philosophy
History
Social Science
Natural Science
Engineering
Industry
Art
Linguistic
Literature
Total
1968
2.0
10.0
7.0
18.4
13.1
5.1
1.8
3.4
1.1
38.1
100.0
2004
(%)
1.2
10.7
5.2
13.6
6.8
6.0
2.4
12.6
2.8
38.7
100.0
Translated Books of Literature
Original language
1968
2004
English
394
1,523
(606: Harlequin)
German
63
62
French
133
93
Russian
66
27
Italian
7
15
Others
144
198
Total
807
1,918
Number of Translation titles
among Top 30 bestsellers
10
9
8
7
6
5
4
3
2
1
0
83
85 87
89
91
93 95
97 99
01
03
05 06
Harry Potter and the Half-Blood Prince
was only translation title among top 20
sales in 2006.
In 2005, The Da Vinci Code was only
translation title among top 20.
The Brothers Karamazov
(by Dostoevskii)
New translation was published by
Kobunsha in September 2006.
4 volumes in paperbacks
More than 260,000 copies was sold.
Trends of Bestsellers in Japan
1. Paperbacks in Shinsho size
Major Big publishing Houses are publishing many books in
the Shinsho size. In 2006, 11 books among top 30
bestsellers was in the shinsho size.
This is the biggest bestseller in 2003. The title is BAKA NO
KABE, the Wall of the Fools. This book was sold by more
than 4 million copies to date. The author is Dr. Takeshi
Yoro, an Anatomist.
The contents of shinsho books are in various fields.
There is a few translation titles, for Example, Shueisha
published the works of Dr. Amartya Sen, who is the first
Novel Economics Prize winner from Asia, and Dr. Avram
Noam Chomsky, who is one of the most famous linguist
and critic to the neo conservatism in the United States.
No.2 Light Novels.
This is a kind of Japanese English. This means fiction titles,
such as love story, fantasy or science fiction for young
generation, mainly young women.
It seems that they are a kind of intermediate between
manga and novel. Many of them contain some illustrations
and, their jackets are just like comics.
Some of them are published as e-books and we can read
them with mobile phone.
No. 3 Mental cure of the aged people.
• Among the bestsellers, there are some books for coloring
drawings. And some books are printed the text of famous
classics in gray color and readers will be able to trace them
with pencil. The aged people may feel a kind of cure when
they spend quiet time in their room, and color drawings or
trace text by themselves.
• And not a few books to look back on the time of 1950s to 70s.
People were poorer than now, but they were able to believe
a legend of high economic growth of Japan and be able to
have a hope in the future then.
Export from Japan to Asia
Translation from Japan to Korea
Total number of new publication
45,521 titles
Translation from Japan
4,324 titles(9.5%)
Manga・Comic 2,668
Literature
581
Children’s Book 402
Social science
303
Kyobo Book Store, Seoul Korea
Reading Promotion
・The Year of Book Reading for Children
(2000)
・The Act of Book Reading Promotion for
Children(2001)
・Literary Culture Promotion Act(2005)]
・Literary Culture Promotion Organization
(to be established on 2007.10.24)
Thank You for your attention.
Seiichi HIGUCHI
higuchi@jbpa.or.jp